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Organizational Structure and Change Insights

This document discusses different theories of organization structure, design, and change. It covers contingency theory, which follows a rational decision-making process, and strategic choice theory, which argues organizations have more autonomy than environmental forces. It also discusses the power-control perspective, where non-rationality, divergent interests, and dominant coalitions influence structure. Politics and interdepartmental conflict can arise from limited resources and goal incompatibility. The dominant coalition will select a structure that maintains and enhances their control.

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harisankar suresh
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17 views12 pages

Organizational Structure and Change Insights

This document discusses different theories of organization structure, design, and change. It covers contingency theory, which follows a rational decision-making process, and strategic choice theory, which argues organizations have more autonomy than environmental forces. It also discusses the power-control perspective, where non-rationality, divergent interests, and dominant coalitions influence structure. Politics and interdepartmental conflict can arise from limited resources and goal incompatibility. The dominant coalition will select a structure that maintains and enhances their control.

Uploaded by

harisankar suresh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Organization

Structure, Design
and Change
Prof. Shreyashi Chakraborty
BM 19-21
Environment
Vestibulum congue

Goals and
Vestibulum congue Technology
Vestibulum congue
Strategy
Standardization
Formalization
Hierarchy
Centralization

Culture
Vestibulum congue Size
Vestibulum congue
Contingency theory
➔ Follows traditional decision-making process
➔ Assumes rationality
➔ Dominant coalition is same as top management
➔ Goal consensus exists
Strategic Choice
➔ More autonomy than that inferred by those arguing for the dominance of
environmental, technological or other forces
➔ Organizational effectiveness should be construed as a range
➔ Power to manipulate and control their environments
➔ Perceptions and evaluation of events are an intervening link between
environments and actions
Limitations of Strategic Choice
➔ Commitments lock into limited domain
➔ Barriers to entry in many markets
◆ Economies of scale
◆ Absolute costs
◆ Product differentiation
Power-control perspective
➔ Non rationality
◆ Who defines rationality and what is rationality?
➔ Divergent interests
➔ Dominant coalitions
➔ Power
◆ Authority
◆ Vertical and horizontal movement
➔ Selection of structure by those in power which maintains and enhances
their control
The criteria and
preferences in the
Decision will be decision will
made by the reflect the
dominant self-interest of the
coalition dominant coalition

Strategy
Size Satisficing level
Structural Emergent
Technology of org.
Alternatives Structure
Environment effectiveness
Culture
What gives you power?
➔ Hierarchical authority
➔ Resources
➔ Control of information
➔ Network centrality
➔ People
What gives you power?
➔ Dependence
➔ Control of resources
◆ Scarcity,
◆ Importance,
◆ non-substitutability
➔ Centrality
◆ Reduce organization dependencies
◆ Integrating with other functions
➔ Coping with uncertainty
Interdepartmental Conflict
➔ Group identification, observable group differences and frustration
➔ Sources of conflict
◆ Goal incompatibility
◆ Differentiation
◆ Task interdependence
◆ Limited resources
Politics
➔ Exercise of power to influence decisions
◆ Position and responsibility
◆ Individual political behaviour
◆ Hard or soft power
➔ Self-serving behavior and natural decision process
➔ Efforts of organizational members to mobilize support for or against
policies
➔ Uncertainty or disagreement on choices and hence reaching agreement
◆ Resource allocation
◆ Structural change
◆ Management succession
Implications of the Power-Control
➔ Technology and Environment
➔ Mechanistic and Organic structure
◆ Maintenance of control
◆ Stability, routinization
➔ Small hierarchy and less standardization or specialization
➔ Higher levels of formalization
➔ Centralization
◆ Use of technology
◆ Parameters of decision

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